Dear John,
Towards the end of 2021 I emailed you warning that the federal government’s out-of-control spending might only get worse, because the new Liberal minority government will likely partner on most legislation with the NDP.
Here we are in April 2022 and that prediction has unfortunately become formalized: the Trudeau government has struck a deal with the NDP that will allow the Liberals to continue governing until 2025.
If this deal makes you very nervous about this week’s upcoming budget – you have good reason to be.
Previous studies of ours have shown that Prime Minister Trudeau broke the record for the highest level of spending in Canada’s history in 2018/19, and then broke that record again in 2019/20 – before COVID!
Dangerously, this new deal with the NDP will permit Trudeau to table four more budgets – and now, doing so while meeting NDP demands for even more increased spending!
These previously unthinkable levels of spending have serious potential consequences for Canadians, not the least of which is further tax increases.
The NDP has expressed support for a wealth tax and tax hikes on personal income, capital gains, and businesses — all of which would be economically damaging to a country already facing record-high inflation while recovering from the effects of a global pandemic.
Of course, more spending might be excused if it translated into a stronger economy.
But that wasn’t the case pre-COVID and is unlikely to be the case post-COVID: another recent Fraser Institute study measured economic performance in the four-year periods preceding the last five recessions.
Of the five administrations measured, the free-spending Trudeau government had the worst performance on all measures: GDP growth, income growth, job creation, and business investment.
John, the work we’re doing here at the Fraser Institute is so important!
Never has it been more important to shine a light on federal finances, and provide Canadians with the information and analysis they need to hold their governments accountable.
Will you help us do just that? [[link removed][campaignid]]
I’m happy to report that our work reached over 27 million people on social media alone last year, and we’re on track to surpass that number this year.
With Fraser studies driving news coverage and op-eds from coast-to-coast, we are helping move the needle on public opinion and policy.
If you’re able to, please consider making a donation today [[link removed][campaignid]] so that we can bring our work to even more Canadians.
Sincerely,
Niels Veldhuis
President
The Fraser Institute
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